IFRS 18 Readiness • EU • UK

Get ready for
IFRS 18
with Lucanet

Map your chart of accounts, run IAS 1 and IFRS 18 in parallel, maintain a full audit trail, and produce IFRS-18-compliant disclosures – all within a single platform.

Get ready for IFRS 18 with Lucanet

IFRS 18: What's changing

Four structural shifts your close-to-disclose process must adapt to.

Starting in 2026.

Operating, investing, financing, income taxes, and discontinued operations, with two mandatory subtotals: operating profit and profit before financing and income taxes. Standardized definitions replace the historical diversity in how groups presented their P&L.

Define and disclose MPMs in audited financial statements, ending the era of unaudited 'non-GAAP' metrics. Each MPM must be reconciled to IFRS-defined subtotals – with full transparency on tax effects and non-controlling interest impacts – and is subject to external audit scrutiny.

Interest paid moves to ‘financing’. Interest and dividends received move to ‘investing’. There will be no more optional treatments: every item must be classified consistently across the group, with no exceptions.

Functional presenters must disclose five natural expense categories. FX differences are now split by the underlying transaction type, while stricter aggregation principles eliminate vague line items.

Retrospective restatement across all entities

2026 comparatives must be restated for each entity. Most systems aren't built for it, the manual effort is significant, and the audit risk is real.

No governance model for MPMs

Every metric used externally must now be reconciled to the nearest IFRS 18 subtotal inside the audited financials. Most companies have no existing process for this.

Data granularity your ERP wasn't built for

Five natural expense categories, FX split by transaction type, and group-wide classification consistency. Your ERP wasn't designed for this level of detail.

IFRS 18: learn more

IFRS 18 guidance and resources

Readiness assessment

IFRS 18 readiness assessment – 19 questions across 6 dimensions

Blog post

IFRS 18: All changes at a glance

eBook

The ultimate IFRS 18 readiness guide

See where you stand in one conversation



Get an IFRS 18 review with a Lucanet finance specialist. We’ll walk through your current setup and show you what needs to change before January 2027.

FAQ

Questions from finance teams

The January 2026 deadline is for comparative period data capture, not final reporting. Every transaction from 1 January, 2026 must be tagged for the IFRS 18 restatement. Miss this, and you will face manual reconstruction of 12 months of data across all subsidiaries.

Your ERP handles transactions. IFRS 18 requires a consolidation layer that applies classification rules, manages parallel frameworks, and produces required reconciliations. Lucanet acts as that layer without touching your ERP.

Any non-IFRS financial measure communicated publicly that isn't a subtotal required by IFRS 18 counts as an MPM. Metrics like adjusted EBITDA, and underlying operating profit now require a formal reconciliation to the nearest IFRS 18 subtotal, within audit scope.

Yes, the restatement of obligation isn't limited to year-end reports. Interim financial statements throughout 2027 also require restated 2026 comparatives under IFRS 18. This means your systems need to be capturing IFRS-18-compliant data from 1 January 2026, not just for the annual close.

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